Bank of Kigali Group shareholders increased their wealth by $ 59.8 million at the Nairobi Securities Exchange (NSE) even as offshore institutional investors flocked out of East Africa amid uncertainties over Covid-19.
However, they lost 5.6% of their wealth on the Rwanda Stock Exchange due to a sharp drop in stock prices.
NSE trading data from January to November analyzed by East Africa shows that the bank’s value reached $ 223.4 million in November, up from $ 163.5 million in January.
Analysts attribute this to NSE’s ability to provide more opportunities for listed companies to tap mature investors in East African stocks.
“We believe in the regional integration of our capital markets as a way to provide more opportunities and facilitate investors,” said Diane Karusisi, CEO of Bank of Rwanda Group Plc.
She said investors were also keen to buy the shares of Bank of Kigali Group Plc, having confidence in the group’s business fundamentals, Rwanda’s economic recovery and strong prospects for future growth.
“We have achieved growth and profitability in all of our business lines; commercial banking, insurance, investment banking and technology, ”said Karusisi. In the fiscal year ended Dec. 31, the bank expects to report net income of $ 463 billion, up from $ 37 million last year.
According to Karusisi, the growth projection for the full year ending December 31 is based on the performance of the first three quarters of the year and the activity recorded during the months of October and November.
“Going forward, we expect customer lending, our enhanced digital service channels, and transaction revenue to be the primary revenue drivers.
According to information from African Stock Exchanges (AFX), an association of African stock exchanges, Bank of BK Group is the 35th most traded share on NSE in the past three months.
“BKG traded a total volume of 683,000 shares – in 177 trades – valued at $ 160,191 during the period, with an average of 10,841 shares traded per session,” AFX said.
However, the bank’s investors are counting losses on the Rwanda Stock Exchange (RSE), blamed on low activity at most ATMs, as offshore investors make conscious investment decisions about investing in stocks of East Africa.
RSE trading data shows that Bank of Kigali Group’s share price fell 5.6% from $ 0.27 in January 2021 to $ 0.24 per share in November 2021.
The weak activity at RSE caused the shares of the Bank of Kigali group to stagnate at Rwf 250 per share from August to November.
Dar purse shines
There is only the Dar es Salaam Stock Exchange (DSE), which has outperformed its peers.
According to Uganda’s CMA analysis, the DSE has been helped by improving investor sentiment and increasing participation of local institutional investors.
Uganda CMA Shares revenue at DSE in the third quarter of 2021 increased 17% to $ 15 million from $ 12.9 million in the second quarter.